Competitive Factors

Competitive Factors

Competitive Factors Jonathan Poland

Competitive factors are external forces that impact a business’s strategy. They can be identified in any competitive situation. SWOT and PEST analysis are two common strategic planning tools that help identify these factors, which are often referred to as opportunities, threats, political, environmental, social, and technological factors. The following are some common examples.

Ability to Change (of competition) Access to Capital
Anti-Competitive Practices Attitudes & Values
Bargaining Power Barriers to Entry
Barriers to Exit Brand Image
Brand Recognition Brand Reputation
Business Models Business Risk
Capacity Climate & Weather
Consumer Perceptions Contract Terms (of competition)
Culture Change Customer Experience
Customer Loyalty Customer Needs
Customer Pain Points Customer Satisfaction (of competition)
Disaster Risk Distribution
Economic Conditions Economies of Scale
Employee Satisfaction (of competition) Financial Conditions (e.g. interest rates)
Functions & Features Government Policy
Infrastructure Intellectual Property
Know-how Labor Market Conditions
Location Management Efficacy (e.g. incompetence of competitors)
Market Share New Entries (into a market)
Operating Models Organizational Culture (how does the competition work)
Overhead Costs Partnerships
Permits & Licenses Political Environment
Political Stability Pollution
Price Competition Problems & Incidents (of the competition)
Product Development (i.e. future products of competition) Product Positioning
Product Quality Product Variety
Promotion Regulations & Compliance
Relational Capital Revenue Models
Service Quality Strategic Assets
Strategy of Competition Substitute Goods
Suppliers Supply
Supply Chain Switching Costs
Talent Taxation
Technological Change Trade Barriers
Trade Secrets Turnaround Times (of competition)
Unit Costs Usability

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